A hybrid vehicle has a powertrain that includes a transmission with a planetary gear set that has a first, a second, and a third member. An engine is connected for unitary rotation with the first member. A first final drive is operatively connectable with the carrier member and connected with the first axle. A first motor-generator is connected for unitary rotation with the third member. A second motor-generator is operatively connected for proportional rotation with one of the axles. A first clutch is selectively engageable to connect any two of the members for unitary rotation with one another. The planetary gear set provides an underdrive ratio of speed of the second member to speed of the engine when the sun gear member is stationary.