Abstract: A drive axle adapted for use in hybrid vehicles and having an electric motor and a gearbox packaged within a common housing assembly. The gearbox includes a differential assembly driven by a planetary-type reduction unit. The reduction unit includes a first planetary gearset having a first sun gear driven by the motor, a first ring gear, and a set of first planet gears meshed with the first sun gear and the first ring gear. A first planet carrier is non-rotatably fixed to a stationary number and rotatably supports the first planet gears. A second planet gearset includes a second sun gear fixed for rotation with the first ring gear, a second ring gear non-rotatably fixed to the stationary member, and a set of second planet gears rotatably supported from a second planet carrier and which mesh with the second sun gear and the second ring gear.