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