The technique of the invention sets a compensated power Pa and updates a charge-discharge power demand Pb* with the setting of compensated power Pa, when a driving power demand Pr* set according to an observed accelerator opening Acc is not less than a lower correction limit P3, which is less than an engine stop criterion value P2, but is less than an upper correction limit P4, which is greater than the engine stop criterion value P2 but is less than an engine start criterion value P1 (steps S220 and S230). The technique then calculates an engine power demand Pe* from the updated charge-discharge power demand Pb* (step S240) and controls an engine and two motors. When the driving power demand Pr* is less than the lower correction limit P3, the technique stops operation of the engine (S150) and drives the hybrid vehicle with the power of the motor (steps S170 to S190). When the driving power demand Pr* is not less than the upper correction limit P4, the technique calculates the engine power demand Pe* without setting the compensated power Pa and controls the engine and two motors.