When a vehicle is moving rounding a corner, the turning radii of inner and outer wheels differ. It may be noted that a difference also exists in the distance travelled by the inner and outer wheels. As both sets of wheels complete the corner in the same period of time, it follows that their respective speeds will also differ.
The differential is responsible for generating this difference of speed in inner and outer wheels. If the left and right wheels are connected directly without differential, turning would not be possible unless one of the wheels started to slip. Thus, cornering in such a condition would be extremely difficult and would also result in an increased amount of tyre wear.

Thus, in simple works, differential is a mechanism by means of which outer wheel runs faster than the inner wheels while taking a turn or moving over upheaval road. The differential consists of a system of gears arranged in such a way that connects the propeller shaft with the rear axles. The differential is a part of rear axle housing assembly, which includes differential, rear axles, wheel and bearings.
The differentials are used in:
● The rear drive axle of front engines, rear wheel drive vehicles.
● The transaxle of front engine, front wheel drive vehicles or rear engines, rear wheel drive vehicles.
● The front drive axle and rear drive axle of four wheel drive vehicles.
● The transfer case of some four wheel drive vehicles, have a third differential.