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The current automotive market is dynamic, leading to complex functionalities being incorporated into the control software of various components like engine, gearbox, battery, E-motor etc. This results in utilization of virtual environments for software testing to reduce the development time. The virtual platforms under the category X-in-the-Loop (XiL) e.g. Software-in-the-Loop (SiL) and Hardware-in-the-Loop (HiL) use simulated models to achieve a desired test goal. These component models must be rigorously validated to ensure the quality of XiL-Testing. Thus, it is essential to define a model release process that maintains model quality irrespective of the modeling approach used and the user. One of the challenges is to choose an appropriate Error Metric (EM) that sets criteria for model release. This paper proposes a combination of Theil’s Inequality Coefficient (TIC) and Unscaled Mean Bounded Relative Absolute Error (UMBRAE) as the EM.