A vehicle is controlled such that a driving mode of the vehicle is automatically selected, where the vehicle can be a Plug-In Hybrid Electric Vehicle (PHEV). The vehicle automatically selects an optimum driving mode from among various driving modes capable of being selected by the PHEV according to a driving situation based on a destination established by a driver who uses a navigation system, or recommends various driving modes to the driver, resulting in increased convenience of use. Through selection of an appropriate driving mode, the vehicle can be driven with superior fuel efficiency, resulting in increased driving efficiency.