In the presence of a torque change request (step S170) for changing a torque Tm2 of one motor MG2 to enable a smooth gearshift of a transmission interposed between a motor and a driveshaft, when the change of the torque Tm2 is unattainable within the range of an input limit Win and an output limit Wout of a battery (step S200), the power output apparatus of the invention resets a torque command Tm1* of the other motor MG1 to be within the input limit Win and the output limit Wout of the battery (steps S210 and S250). The power output apparatus also resets an engine power demand Pe* to make a rotation speed Ne of an engine approximately equal to a target rotation speed Ne* (steps S230 and S270). This arrangement ensures a smooth gearshift of the transmission.