In a hybrid vehicle according to the invention, upon satisfaction of a predetermined condition with regard to a gearshift position or a drive mode, a virtual gearshift position according to a driving condition is set to a tentative target gearshift position SPtmp (steps S471 and S472). An object gearshift position SP* is set based on the tentative target gearshift position SPtmp and a boundary value Srt to have a gentle change with a variation of smaller than 1 (step S473). A torque demand Tr* and a target rotation speed Ne* of an engine corresponding to the object gearshift position SP* are then set based on tentative torque demands Tra and Trb and tentative rotation speeds Nea and Neb in correlation to virtual gearshift positions immediately below and immediately above the object gearshift position SP* (steps S474 to S476)