M3 is a transportation model used to analyze vehicle markets in emerging markets around the world. It was originally developed by General Motors Corporation, but is used by MI with permission.
M3 was developed using System Dynamics, which means it can trace the consequences of past actions and market behaviors on the future state of the market system. M3 is also integrated because it emphasizes the interconnectedness of the economy, demographics, the vehicle market, regulatory policies, infrastructure, energy demands, emissions, congestion, and international trade.
The main features of M3 are:
- Its structure, assumptions, equations, and data are transparent and can be viewed either in causal diagrams or text form
- It generates the baseline projections of vehicle markets for up to 10 years into the future, and allows easy scenario analysis under different external conditions (such as GDP growth and fuel price)
- It is valid, i.e. it can accurately simulate historical data
- It is customizable, i.e. new components can be developed and added to the model with ease, and existing sectors and components can be taken out completely, or taken out and modified, and then put back into the model
- It has a user-friendly interface, which makes it easy for decision makers and non-technical users to use without difficulty