A moonlighting taxi driver accused of exposing himself to a female passenger, then abducting and indecently assaulting her, appeared in Wellington District Court today.

The man, who has name suppression until the jury returns its verdict, pleaded not guilty to the three charges.

When the alleged incidents occurred, the man, then 24, worked nights as a taxi driver, supplementing income from his daytime job as a manager.

The incident allegedly took place about 5.45am on December 29 2007, after the driver picked a 21-year-old solo mother of three outside late-night Wellington drinking spot, the Vespa Lounge.

He allegedly commented she looked "hot" in her hot pants, halter-top, heels and hoodie, and said a previous fare - a blonde from Johnsonville - had paid for her ride with oral sex instead of money.

When they arrived at her suburban destination, while she was looking in her purse, he took down his trousers and exposed his erect penis.

She tried to get out of the car, which he prevented by driving away with her.

He then tried to touch and kiss the struggling woman for about 15 minutes, before he desisted, drove her back to her stop and let her out, she told the court in response to prosecutor Dale LaHood's questions.

After a long cross-examination, the taxi driver's lawyer, Letizea Ord, put it to the complainant said "no" in a joking, flirting or teasing way.

"What I am suggesting to you is the way you used the word `no' is you weren't using it seriously," the defence lawyer said.

The complainant - the primary witness in the case - strongly denied Ms Ord's suggestion.

The case continues.