Does anyone know what this contact points do in ke20 speedometer ??

cannot find any clue. There is nothing mentioned in the wiring diagram.

Anyone know what this thing does?? 

When you say "contact point connection" does that mean it goes to the distributor?

In that case it might be for a tacho if KE20 ever had them as an option.

Are there any gauges or warning lights in the dial with the speedo?  Y/G wires in KE70s are for the temperature gauge.

 

no there is no gauges or warning lights other than the typical ke20 cluster........ "contact points" means there is something like a relay's contacts, just like in the headlight switch. I can clearly see it moving up and down when i manually turn the speedometer. I there any over speed warning chime in Ke20s ? One of my friend told me that it is a warning chime, but not sure...