An apparatus includes a torque circuit and a clutch circuit. The torque circuit is structured to monitor a torque demand level of an engine. The clutch circuit is structured to (i) disengage an engine clutch of a transmission to decouple the engine from the transmission in response to the torque demand level of the engine falling below a threshold torque level and (ii) disengage a motor-generator clutch of the transmission to decouple a motor-generator from the engine in response to the torque demand level of the engine falling below the threshold torque level. The motor-generator is directly coupled to the transmission.