Device not reply. Receive time out error

I am trying to run the following code. It compiles and uploads perfectly however, whenever I try to connect my RC car with my phone, the bluetooth gets connected (indicated by the slow blink of BT module - HC-05) but the RemoteXY app on my android phone shows Device not reply. Receive time out error and disconnect my module.
I also experimented with a code with just a joystick which does nothing. This new code sometimes allows the devices to get connected and shows the graphics on the phone screen and sometimes it shows the same error. Kindly help me out!!

/*
   -- New project --
   
   This source code of graphical user interface
   has been generated automatically by RemoteXY editor.
   To compile this code using RemoteXY library 2.3.3 or later version
   download by link http://remotexy.com/en/library/
   To connect using RemoteXY mobile app by link http://remotexy.com/en/download/                   
     - for ANDROID 4.1.1 or later version;
     - for iOS 1.2.1 or later version;
   
   This source code is free software; you can redistribute it and/or
   modify it under the terms of the GNU Lesser General Public
   License as published by the Free Software Foundation; either
   version 2.1 of the License, or (at your option) any later version.   
*/

//////////////////////////////////////////////
//        RemoteXY include library          //
//////////////////////////////////////////////

// RemoteXY select connection mode and include library
#define REMOTEXY_MODE__SOFTSERIAL
#include <SoftwareSerial.h>

#include <RemoteXY.h>

// RemoteXY connection settings
#define REMOTEXY_SERIAL_RX 3
#define REMOTEXY_SERIAL_TX 2
#define REMOTEXY_SERIAL_SPEED 9600

// RemoteXY configurate 
#pragma pack(push, 1)
uint8_t RemoteXY_CONF[] =
  { 255,3,0,0,0,67,0,8,13,4,
  5,48,60,14,30,30,0,2,26,31,
  2,0,9,6,22,11,0,2,26,31,
  31,79,78,0,79,70,70,0,131,1,
  7,23,23,8,1,2,31,73,110,100,
  105,97,110,0,131,0,14,31,33,8,
  2,2,31,76,105,102,101,104,97,99,
  107,101,114,0 };
 
// this structure defines all the variables of your control interface
struct {

    // input variable
  int8_t joystick_1_x; // =-100..100 x-coordinate joystick position
  int8_t joystick_1_y; // =-100..100 y-coordinate joystick position
  uint8_t switch_1; // =1 if switch ON and =0 if OFF

    // other variable
  uint8_t connect_flag;  // =1 if wire connected, else =0

} RemoteXY;
#pragma pack(pop)

/////////////////////////////////////////////
//           END RemoteXY include          //
/////////////////////////////////////////////

#define PIN_SWITCH_1 13

//define right motor control pins
#define right_motor_A 8
#define right_motor_B 9
#define right_motor_speed 11 //enable pin

//define left motor control pins
#define left_motor_A 6
#define left_motor_B 7
#define left_motor_speed 10 //enable pin

//define two arrays with a list of pins for each motor
uint8_t RightMotor[3] = {right_motor_A, right_motor_B, right_motor_speed};
uint8_t LeftMotor[3] = {left_motor_A, left_motor_B, left_motor_speed};

//speed control of motors
void Wheel (uint8_t * motor, int v) // v = motor speed, motor = pointer to an array of pins
{
  if (v > 100) v=100;
  if (v < -100) v=-100;
  if (v > 0){

    digitalWrite (motor [0], HIGH);
    digitalWrite (motor [1], LOW);
    analogWrite (motor [2], v * 2.55);
  }
  else if ( v<0 ){

    digitalWrite (motor [0], LOW);
    digitalWrite (motor [1], HIGH);
    analogWrite (motor [2], (-v) * 2.55);
  }
  else{
    digitalWrite (motor [0], LOW);
    digitalWrite (motor [1], LOW);
    analogWrite (motor [2], 0);
  }
}

void setup()
{
  RemoteXY_Init ();
 
  pinMode (PIN_SWITCH_1, OUTPUT);
 
  //initialization pins
  pinMode (right_motor_A, OUTPUT);
  pinMode (right_motor_B, OUTPUT);
  pinMode (left_motor_A, OUTPUT);
  pinMode (left_motor_B, OUTPUT);
 
}

void loop()
{
  RemoteXY_Handler ();
 
  digitalWrite(PIN_SWITCH_1, (RemoteXY.switch_1==0)?LOW:HIGH);
 
  //manage the right motor
  Wheel (RightMotor, RemoteXY.joystick_1_y - RemoteXY.joystick_1_x);
  Wheel (LeftMotor, RemoteXY.joystick_1_y + RemoteXY.joystick_1_x);

}