Area-based (i.e., non-lane based) heterogeneous traffic (as in developing countries) differs significantly from lane-based homogeneous traffic (as in developed countries). In area-based traffic, drivers generally ignore the lane markings and perceive the entire road space while progressing longitudinally. Traditional car-following and lane-changing models are not directly applicable to modelling such driving behaviour. This research aimed to microscopically model the dynamic of the subject vehicle in area-based traffic flow. The modelling was conducted in two steps. In Step 1, discrete choice-based modelling was conducted to identify the area-based movement direction of the subject vehicle. In Step 2, a vehicle-following behaviour model was developed to simulate the next position of the subject vehicle (along the direction of a selected alternative, as modelled in Step 1 of this modelling). The macroscopic validation of the model was performed to ensure the robustness of the model.