Hardware-in-the-Loop (HIL) testing is essential for automotive validation but suffers from fragmented and underutilized test artifacts. This paper presents HIL-GPT, an industry-deployed retrieval-augmented generation (RAG) system that integrates semantic retrieval with domain-adapted large language models to support test engineers in real-world HIL workflows. The system combines domain-specific embeddings to enable traceable retrieval of test cases and requirements under industrial latency and cost constraints. Through empirical evaluation, we show that compact, domain-adapted models can achieve a favorable trade-off among accuracy, latency, and cost compared to larger general-purpose models, challenging the assumption that larger models are always preferable in industrial NLP systems. An A/B user study further confirms that HIL-GPT improves perceived helpfulness, truthfulness, and satisfaction over general-purpose LLMs.