FRANKFURT (AP) -- Audi AG saw 2009 net income fall 39 percent to euro1.35 billion ($1.8 billion) as the economic downturn cut demand for its cars, the German automaker said Tuesday.

Audi, based in Ingolstadt, earned euro2.2 billion in 2008. The company did not break out fourth quarter figures.

Audi said revenue fell 13 percent to nearly euro30 billion from euro34.2 billion in 2008. Total vehicle production fell 9.4 percent to 932,260 cars in 2009 from just over 1 million in 2008.

Audi is a unit of Europe's largest carmaker Volkswagen AG.

Audi said despite an expected slight increase in demand for cars in 2010, the European market will stagnate or deteriorate further. However, the company should see gains from the emerging markets of India and its most important foreign market, China, it said.

Audi said it "should succeed in restoring the pattern of growth seen in recent years as early as 2010."

Audi said it will boost its deliveries as well as revenue in 2010 and 2011. With productivity improvements and strict cost management, the company should also see an improvement in operating profit, Audi said in its report.

"Systematic renewal and expansion of the product portfolio remain an exceptionally important aspect," the company said. As a result, Audi said it will soon launch its first premium vehicle in the small car class called the Audi A1, and that the overall model range will expand.

German revenue fell 8 percent in 2009 to nearly euro9 billion for Audi, while the rest of Europe saw revenue fall 21 percent to euro13.2 billion. Europe benefited from government programs during the downturn in which new car sales were subsidized. Those programs are set to end this year or already have finished.

The Asia-Pacific region posted a 12 percent increase in revenue to nearly euro5 billion, with Chinese sales in particular helping the brand.

Africa posted a small gain in revenue, while North America and South America reported declines in revenue for 2009.

Earlier this week Audi said global February unit sales increased 20 percent on the year, and that it is on track for a strong first quarter.

The company said it saw a 62 percent increase in sales in China and a 34 percent increase in the U.S. during February. Western Europe also reported an improvement in February unit sales from year-ago levels.

Shares of Audi were about 1 percent higher at euro577 in Frankfurt morning trading Tuesday.