A twin clutch axle for a motor vehicle defines independent fluid filled chambers: a pair of spaced apart chambers each receiving a respective one of the clutches and a separate, intermediate chamber receiving a hypoid drive gear. Each of the clutches is preferably an electromagnetically operated multiple friction plate assembly and the fluid in the clutch chambers is like or similar to automatic transmission fluid. The separate hypoid drive gear chamber is filled with a gear lubricant or heavy weight oil. The pair of clutch chambers may be sealed and fully independent of one another or may be in fluid communication with one another through, for example, passageways or a common sump. By utilizing separate compartments for the clutches and hypoid drive gear, the lubricants utilized therein can be optimized for friction clutch and gear operation thereby improving the performance and service life of the axle.