Lets be honest, it's a good marketing move to make the the non real M cars feel more special by wearing a M badge, the same way an S4 looks like a special car even if it's not an RS, a 335is will look more special if it's called a M335i and it weares the little colored badge! Also, if the real M cars ever get softer, it surely wont be because some lesser expensive models wears the M badge!
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