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The automotive sector is going through a phase of stiff competition among various Original Equipment Manufacturers for increasing their profitability while ensuring highest levels of customer satisfaction. The biggest challenge for such companies lies in minimizing their overall cost involving investments in Research and Development, manufacturing, after sales service and warranty costs. Higher warranty costs not only affect the net profit but in turn it also affects the brand image of the company to a large extent in the long run. An effort is made here to target such warranty costs due to frequent tail pinion and hub seal leakages on single reduction/hub reduction axles of Heavy Commercial Vehicles in the field. A preliminary study involving the severity analysis of such failures is followed by a step by step investigation of these failures.