1313 GMT - The European auto industry will likely continue to lose share to Chinese peers, analysts at Morgan Stanley say in a note. There is continued focus on the regulatory changes in Europe as to how to reduce the impact from China imports, the analysts say. In Europe, the auto market should continue to recover, they add. Further, companies could do new joint ventures with peers in China, dispose of assets or diversify out of autos, which would potentially spur short-term rallies, they say.