A vehicle drive unit including (a) a transversely-mounted engine, (b) a transmission receiving an output of the engine and having an output shaft, and (c) a differential gear device including a ring gear and arranged to transmit an output of the transmission to a pair of right and left drive wheels while permitting a differential action, and wherein the differential gear device is located on one side of the engine which is on the side of the right and left drive wheels, and rotary power transmitting elements between an output gear fixedly mounted on the output shaft of the transmission and the ring gear of the differential gear device are arranged in a single row parallel to the longitudinal direction of vehicle, so that the vehicle drive unit has a relatively small axial dimension in the transverse or width direction B of the vehicle.