Thanks,
Nauman.
The speedometer and odometer do not measure the actual distance you
travel; they estimate it based on the original equipment tire size.
As to your question of Faulty? Not hardly. Mis-calibrated? Perhaps,
but certainly not faulty.
Whether you want to spend good money to have it re-calibrated is up to
you; most of us who care have our car's odometer/speedometer measured
periodically and learn how to adjust. In Southern California, AAA
provides a free odometer/speedometer check. Check with your local
auto club.
Your mileage may vary.