@rks, 7-8% speedo error is not much. Its normal. Most cars have that. I also run 35PSI when I do high speed.
Moreover the weight saving of an alloy is overrated. Actually a wider tire offers more drag than a narrow tire.
For example when I shifted to potenza G3 from MRF ZVTS in my indica(185 vs 165), the speedo which would show 150 at times, started topping out at 140-145.
So if you fit a wider tire, your high speed drag will always increase.
I suggest you borrow a GPS enabled cell phone from somebody and map your speedo error. To have an indication, drive at 120kmph on the speedo for around 10 seconds, and then look at the GPS, it would give your true land speed.
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