One axle of a hybrid vehicle is powered by an electric motor while a second axle of the vehicle is powered by a powertrain that includes an internal combustion engine. The electrically driven axle can be controlled in a speed control mode or in a torque control mode based on a driver demanded torque. The speed control mode is used when slip is detected at the electrically driven axle. The torque control mode is used when the electrically driven axle has traction. During a transition between these modes, the rate of change of torque is controlled to a predetermined level to mitigate noise, vibration, and harshness.