Abstract: A vehicle drive train comprising a transmission 11 having a differential 3 mounted in a transmission case 7, the differential 3 having a differential carrier 3a and a power transfer ring gear 2, the power transfer ring gear 2 being mounted on or integrally formed with the differential carrier 3a, the vehicle drive train further comprising a power transfer unit 8 having a pinion gear 4 which is rotatably mounted in the transmission case 7 and meshes directly with the power transfer ring gear 2. The present invention provides a more compact vehicle drive train assembly including a configuration that minimises the space occupied by the existing components and in particular provides a power transfer unit 8 which allows for a more compact arrangement.