@Xulfiqar
This problem is with a friend's car. Its a 2001 Corolla XE, 130k driven.
Very well maintained. The problem started with a little heat up during hot afternoons. We serviced the cooling system by performing a proper flush, replaced thermostat and refilled with original Toyota coolant. The car maintains idle operating when ideal or if being driven at normal speed <80kmph @ low RPMS. As soon as we raise the RPMS and bring the car to 100kmph with RPM of 3+ it starts heating up and the needle moves a little over half way. If the speed is reduced at this point, as the RPM drops the needle comes down to halfway. If the car is stopped and left to idle for a 2 minutes the needle gets back to its standard position which is a little below half way mark. The problem occurs with or without AC.
Thermostat is original Toyota rated 82C, Car has been driven throughout on synthetic motor oil. Plugs were recently replaced with standard NGKs. Fan is also working fine. Since it heats up only at high speeds and not while idling in trafic we have ruled out the possibility of a bad fan. We checked the timing and it is within specified range and there is no pinging/knocking. Radiator is original Toyota which came with this model in is great condition. Water level does not decline.
Kindly advise!