The aim of this paper is to present a case study on the implementation of a Quality Circle project under TQM in an auto component manufacturing industry ABC Ltd. (name changed) situated in Gurugram, India to highlight the benefits gained by the company. The TQM implementation at ABC Ltd. was initiated in 1998 and completely implemented by 2003 in a phased manner. Quality Circle is not only a problem solving tool, but it may be treated as a communication tool also which helps the organization for continual improvement. The rejection rate of intermediate shafts used in steering column of cars was significantly high and particularly the rejection of Nissan intermediate shafts was 68.5% of the total rejections. The company was interested to decrease this high rejection rate using the Quality Circle approach.  After successfully implementing the countermeasures proposed by QC, the rejection rate of Nissan Intermediate Shaft (IMS) reduces to zero with in a period of five months.