In this paper, an estimation system of vehicle position and orientation on magnetic lane, which is a parameter of the steering controller for automated lane following is described. To verify that the magnetic dipole model could be applied to a magnetic unit paved in roadway, the analysis of the model is compared with the data of 3-axis magnetic field measured experimentally. The sensor location could be estimated by analysis of the model based on experimental data. For the magnetic lane model merged magnetic unit, the relation of sensor location and magnetic field is acquired experimentally. The proposed estimation of vehicle position and orientation is adopted to automated lane following by computer simulation.