A hybrid vehicle having an engine and a motor as power sources that generate electrical power, and an output shaft to which driving power from at least one of the engine and the motor is transmitted for driving the vehicle. The vehicle may be driven in an engine cruise mode wherein the vehicle is driven only by the engine, or in a motor cruise mode wherein the vehicle is driven only by the motor. A clutch section provided between the engine and motor and a pair of axle shafts selectively disconnects the driving powers of the engine and the motor. A control section controls the clutch section, wherein the driving mode of the vehicle is alternately switched between the engine cruise mode and the motor cruise mode. As such, an engagement degree of the clutch section is decreased at switching, and then gradually increased until it is totally recovered.