A vehicle includes a motor generator and an engine generating driving power for running, and an ECU for controlling the motor generator and the engine. If user request power and a vehicle speed are substantially constant when inertial running control is selected by a user, the ECU causes driving power variation operation to be performed on the motor generator and the engine in which the motor generator and the engine are switched between a low output state and a high output state. The vehicle runs with inertial force of the vehicle in the low output state. As a result, energy efficiency during vehicle running can be improved.