Software for autonomous vehicles is highly complex and requires enormous amount of vehicle testing to achieve a certain level of confidence in safety, quality and reliability. According to the RAND Corporation, a 100 vehicle fleet running 24 hours a day 365 days a year at a speed of 40 km/hr, would require 17 billion driven kilometers of testing and take 518 years to fully validate the software with 85% confidence . In order to reduce cost and time to accelerate autonomous software development, Hardware-in-the-Loop (HIL) simulation is used to supplement vehicle testing. For autonomous vehicles, path following and trajectory tracking controls are an integral part for achieving lateral control. Combining the aforementioned concepts, this paper focuses on a real-time implementation of a path-following lateral controller, developed by Freund and Mayr . The controller is implemented on a powertrain subsystem HIL simulation bench to enable lateral control for automated driving applications. To accomplish control validation, simulations were conducted over varying vehicle inertial and environmental conditions such as speed, payload mass, payload position, surface type/friction, rapid acceleration/deceleration, and crosswinds. Moreover, sensitivity analyses were also conducted over these simulated conditions to quantitatively understand the real-time behavior of the lateral controller. 2017 Ford Fusion Hybrid powertrain controllers and actuators were used as the hardware platform for the powertrain subsystem. The simulation of other subsystem plants and controllers was achieved by using a real-time CarSim-Simulink co-simulation environment representative of the 2017 Ford Fusion Hybrid through a dSPACE HIL simulator.