A hybrid vehicle is mounted with a traction motor, a power storage device for storing electric power input to and output from the traction motor, an engine, and a power generation mechanism to generate charging electric power for the power storage device by an output from the engine. An ECU sets charging/discharging electric power of the power storage device to control SOC of the power storage device to be within a predetermined range centered about a SOC control target in a running mode with the engine operating. The output from the engine is set to ensure the charging/discharging electric power. The ECU sets the charging/discharging electric power such that the power storage device is discharged to an extent corresponding to a predetermined SOC higher than the lower limit SOC according to requirement power required for vehicle running, even when the SOC is lower than the SOC control target.