In a hybrid vehicle 20, when a deceleration demand based on accelerator-off is made in selecting an S position that allows arbitrary selection of shift positions SP1 to SP6, and fuel cut cannot be prohibited from a state of a battery 50, an engine 22 and motors MG1 and MG2 are controlled so that a driving force based on a torque demand Tr* is outputted with the fuel cut (Steps S410, S420, S360 to S400). When the deceleration demand based on the accelerator-off is made in selecting the S position, and the fuel cut can be prohibited from the state of the battery 50, the engine 22 and the motors MG1 and MG2 are controlled so that the engine 22 substantially performs self-sustaining operation at a target rotation speed Ne0 and a driving force based on the torque demand Tr* is outputted (Steps S340 to S400).