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M whatever on non-M cars is all marketing driven IMO because of the popularity of the M cars. Same as the Lexus F series. They add "F sport" to put it a notch above the base models.
Having said that, I can't think of any of my circle of auto enthusiasts that will confuse an M340i with an M3 or an IS F sport with an ISF. The differences are significant.
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2019 BMW X6M
2013 Lexus RX450H
2010 Nissan GTR AMS Omega 14
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