When the output of motor reaches or exceeds a predetermined value during acceleration of the motor, the control target value of the DC link voltage which is the voltage of a power storage device is gradually lowered in corresponding relationship to the motor output. When the motor enters a constant speed control mode, the DC link control target value is maintained at a constant level. When the motor enters a deceleration control mode, the DC link control target value is gradually raised in corresponding relationship to the motor output, and regenerative power is recovered by the power storage device and reused in the next control cycle.