Hardware-in-the-loop simulation is today a standard method for testing electronic equipment in the automotive industry. Since electric drives and power electronic devices are more and more important in automotive applications, these kinds of systems have to be integrated into the hardware-in-the-loop simulation. Power converters and electric drives are used in many different applications in vehicles today (hybrid electric or electric powertrain, electric steering systems, DC-DC converters, etc.). The wide range of applications, topologies, and power levels results in various different approaches and solutions for hardware-in-the-loop testing. This paper gives an overview of hardware-in-the-loop simulation of power electronics and electric drives in the automotive industry. The currently available technologies are described and future challenges are outlined.