A vehicle includes an engine, an MG (motor generator) an MG2, a planetary gear device mechanically coupled to the engine and MG1 and MG2, a battery, an inverter configured to perform a power conversion between the battery and MG1 and between the battery and MG2, and a controller. MG1 generates a counter-electromotive torque when rotated by the engine. During an inverter-less running control where the inverter is put into a gate shut-off state and the engine is driven to cause MG1 to generate the counter-electromotive torque, the controller decreases a engine target rotation speed Netag when an integrated value of battery charging current (deterioration evaluation value D) is greater than a predetermined value (threshold value D1) smaller than the engine target rotation speed Netag when the deterioration evaluation value D is equal to or smaller than the threshold value D1.