I will respond to this question as my first post on the ARLO forum,
I have TCS on my Suzuki Grand Vitara and it is fantastic off road, (too small though...will be buying a 110 Puma shortly)
So how does it work,
Basically to have wheel spin = no grip so what the TCS does is use the ABS ring segments and counts the rotational speed of the wheel, if one wheel is turning faster than the other wheel on the same axle it assumes that the wheel is spinning, then it sends a signal to the ABS modulator for that brake circuit and applies the brake enough to stop the wheel spin, thus all the power on the axle is transferred to the wheel that is not spinning ( which happens to have the most grip).
Also the engine timing gets retarded to reduce power to the spinning wheels (with the suzuki TCS)
Works great on firm surfaces....black soil mud is a issue where none of the wheels can get grip....you will find that the engine will rev up and down constantly, the trick here is to disconnect one of the ABS sensors so the TCS is Off...so you get full wheel spin....
I have owned a Diahatsu Feroza and a 2.8 Hilux, neither of them were able to to perform off road as good as my GV3 with TCS.
have a look at this Youtube link, it is a good example of TCS V'S locked diffs
Land Rover 110 vs Toyota Land Cruiser 70-SW Pt2. - YouTube
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