BUS maker Optare is set to manufacture demo vehicles for India in its first foray into Asian markets.

The firm, which is 26per cent owned by Indian-controlled Ashok Leyland, will make the buses during the second quarter of 2011, it announced in a stock market trading update.

It is hoped the move will lead to lucrative orders from India.

Blackburn-based Optare also announced that its order book has increased to £34million from the £24million quoted last September.

Bosses expected ‘stronger than forecast output’ this year, although they said cold weather affected the delivery of vehicles last month.

The company, of Lower Philips Road, Whitebirk, hopes to sell 100 of its hybrid or electric vehicles in 2011, it said.

Chief executive Jim Sumner said Optare could look forward to 2011 ‘with confidence’. He said: “I continue to be encouraged by the progress turning the business around during what has been a challenging 18 months of restruct-uring and repositioning Optare at a time of extremely difficult economic conditions.”

Last year, Optare switched 50 jobs from Blackburn to its Leeds plant but vowed East Lancashire would remain a key research and development site.