March 14 (Bloomberg) -- Bajaj Auto Ltd., which is developing a $2,500 car for sale by 2011 with Renault SA and Nissan Motor Co., said the project is running to schedule, denying an Indian newspaper report that it will be delayed.

“The project remains largely on schedule, though in the course of development some specifications have been reviewed, leading to adjustments in the overall schedule,” Managing Director Rajiv Bajaj said in an e-mailed statement today. “Bajaj categorically denies that the project is delayed by any significant period such as a year, as has been erroneously reported.”

The Economic Times reported today, citing a person familiar with the development, that the project would miss the 2011 deadline as the company was seeking modifications to the work done so far.

Code-named ULC, the Bajaj car is intended to challenge Tata Motors Ltd.’s Nano, which Tata aims to sell at 100,000 rupees ($1,940).

To contact the reporter on this story: Pratik Parija in New Delhi at pparija@bloomberg.net.

Last Updated: March 14, 2009 07:07 EDT