A hybrid electric vehicle having one or more controllers, at least two axles independently driven by respective electric machines (EMs) that are each coupled to a separate battery, and a combustion engine (CE) coupled to one of the axles. At least one of the controller(s) are configured to deliver power to one of the axles in a single axle drive mode, and in response to a torque demand signal (TDS) exceeding a single axle power limit, to deliver power to another axle, and/or all axles. The controller(s) are further configured to respond to the TDS exceeding a multiple axle power limit, and to deliver additional CE power to the coupled axle. In response to a braking signal, the controller(s) may also adjust at least one of the EMs to capture mechanical braking energy from a respective axle, and generate negative torque to charge one or more of the separate batteries.