A method of selecting drive modes of a hybrid vehicle is described. The method includes determining an energy efficiency of purely electric drive mode, determining an energy efficiency of non-electric or hybrid drive mode, computing an energy related advantage of the purely electric drive from the determined energy efficiencies, and computing a required minimum energy related advantage based on operational parameters of the hybrid vehicle. A comparison is then made between the energy related advantage and the required minimum energy related advantage, and when results of the comparison are within selected limits, purely electric drive of the hybrid vehicle is commanded.