Whether the air in your vehicle feels warm or cold depends not only on its temperature but also several other factors. These factors include your own body temperature, airflow and humidity in the vehicle, and whether you're exposed to direct sunlight. When you adjust the temperature setting, the vehicle considers some of the factors contributing to your perceived temperature. The vehicle then continuously adapts its climate functions to make the interior climate feel like the temperature you selected. This means that the actual temperature in your vehicle may differ from the temperature you selected, giving you a more consistent climate comfort experience.
Your vehicle takes exposure to sunlight into consideration when regulating the climate in the vehicle. For example, if the sun hits the driver's side, it can adjust the airflow and temperature to balance the perceived temperature on that side.