In a modern society, traffic congestion is a major problem in every metropolis. To solve the problem of traffic congestion an innovative omni-directional vehicle is proposed. This research has mainly focussed on developing the comprehensive vehicle dynamics model for an omni-directional road vehicle. Then the stability of the vehicle in the yaw plane was analysed under different scenarios based on the response of the side slip angle. Finally an active steering PID controller was suggested and which, according to the results of the simulation, improved the yaw plane stability. © 2014 The Korean Society of Automotive Engineers and Springer-Verlag Berlin Heidelberg.