Velvet leather
From www.leather-dictionary.com - The Leather Dictionary
There are many products made of velvet Leather worldwide. However, it is not a defined term and therefore no definition of a specific leather type. Sude or nubuck would be understandable because of its velvety surface. But the term is used for rough and smooth leather. Looks like the marketing wants to lift the leather quality of velvet leather at the height of velvet with textiles.
The velvet leather in the Audi is a material with a coating. The velvet leather is available in the A3 as "design selection".
Velvet leather (coated leather) of the Audi A3.
Additional information