In response to a DN operation that changes a shift position SP from a D position to an N position during forward drive in an HV drive mode, then an accelerator position Acc is not less than a reference accelerator position Aref (step S130), a mechanical neutral control is performed to provide a neutral state by releasing transmission of power between an intermediate shaft 32 and a driveshaft 36 by a multi-speed transmission 60 (step S230). An engine and two motors are then controlled to be rotated at rotation speeds close to rotation speeds Nedn, Nm1dn and Nm2dn at the time of DN operation (steps S250, S270 and S280).