I'm an American, and usually I hear "son of a gun" used as a substitute for an expletive. It can be positive, negative, or just express surprise. One might consider it a synonym for the beep used to cover up an inappropriate word on TV. At least in the US it's not offensive in and of itself, though of course it can be used in an insulting sentence. However, I have no idea how it is regarded in the UK, Australia, etc. There are significant differences in the more "colorful" bits of the English language as used in various countries.
As for the Smart ForTwo, it doesn't sell well in the US. I see one occasionally, but they're rare. They have a few problems selling well here. I can think of a few:
2 seats and minimal boot space, same big problem as in India. Except for the gas guzzling, a Chevrolet Corvette is more practical -- it has a large boot.
At $12,000, it costs as much as an inexpensive "regular" car, so even as a family's second car its only real advantage is in fuel savings. A few hundred dollars a year in fuel just isn't enough to convince most Americans that it's worth putting up with a 2-seater with minimal boot space. I suspect the same problem would be even worse for the Smart in India since Indians can buy smaller and more fuel efficient 4+ seat cars than those available in the US.
It doesn't look like a "real" car.
People worry about being crushed by a huge SUV.
Americans like used cars too much for the Smart to sell well. $12,000 new cars don't sell well because an American with $12,000 to spend will probably buy a much nicer 3-4 year old used car that cost around $20,000 new for around $10,000, then save the rest in case it needs repairs.
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