It is determined whether chargeable and dischargeable electric power of a battery which is a power storage device are limited. When it is determined that the chargeable and dischargeable electric power of the battery is limited, an electric power balance target value of the battery during gear shifting control in a stepped gear shifting unit which is a mechanical gear shifting mechanism is calculated. A smaller value is calculated as a change rate limit value when the chargeable and dischargeable electric power is small than when the chargeable and dischargeable electric power is great, and the calculated change rate limit value is used to perform gear shifting control in the stepped gear shifting unit.