INDONESIA’S largest taxi operator expects the upcoming BYD factory to drive down prices for electric vehicles as it seeks to expand its fleet.

Blue Bird aims to have electric vehicles make up 3% of its fleet by next year and gradually increase that number to 20% by 2030, said Noni Purnomo, chairman and commissioner of Bluebird Group Holding , in an interview with Bloomberg Television on Wednesday (November 27).

“We are very happy that BYD is now investing in Indonesia,” said Purnomo, who previously headed the taxi company. “We hope that very soon the price of electric vehicles will drop significantly.”

Blue Bird operated its first electric taxis in 2019. It had nearly 23,000 vehicles at the end of 2023, of which around 1 percent were electric vehicles, according to its latest annual report. The high price of electric vehicles has hampered its efforts to expand its electric fleet.

“We are behind schedule in implementing electric vehicles,” Purnomo said. “Right now the price for us is about three and a half times that of a combustion engine.”

Blue Bird earlier announced it would turn to BYD, the world’s largest electric vehicle maker, for the majority of its lower-cost electric vehicle fleet.

The Chinese company will start commercial production at its factory in the country in early 2026, the Indonesian government announced in March. The plant is part of a $1.3 billion investment. BLOOMBERG