Tesla (NASDAQ:TSLA) representatives are set to meet India’s commerce minister this month to discuss plans to build a factory to produce what the company has described as an all-new $24,000 car, a person with direct knowledge of the matter told Reuters.

According to the source, Tesla has shown interest in constructing a factory in India dedicated to producing affordable electric vehicles (EVs) for domestic and international export markets. This proposed factory would focus on manufacturing the new vehicle model introduced by the company.

The upcoming meeting with India’s commerce minister marks the most significant level of engagement between Tesla and the Indian government since June, when Elon Musk met with Prime Minister Narendra Modi. Musk expressed his intentions during that meeting to invest substantially in the country.

The 2 million rupee ($24,000) EV Tesla representatives were said to have described in discussions about a potential Indian plant would be 25% cheaper than its current lowest-priced offering, the Model 3 sedan, which sells for the equivalent of just over $32,200 in China.

The $24,000 target price for the new Tesla vehicle was reported earlier this month by The Times of India newspaper.

Tesla did not immediately respond to a request for comment.

Reuters reported in May that Tesla executives visited India and held talks with officials on establishing a manufacturing base for cars and batteries in India.

Discussions with Indian government officials in New Delhi are scheduled to resume this month, two people with knowledge of the talks, who asked not to be named because the discussions remain private, told Reuters.

As part of that, Tesla representatives are set to meet Indian commerce minister Piyush Goyal, the first person said, and discussions are expected to centre around setting up an EV supply chain and discussing land allotment for a factory.

The commerce ministry did not respond to a request for comment.