How to set class names dynamically?

Yes, setting __name__ is the correct thing to do; you don’t need to set anything else to adjust the class name.

For example:

def factory(BaseClass) :
    class NewClass(BaseClass): pass
    NewClass.__name__ = "factory_%s" % BaseClass.__name__
    return NewClass

type is the wrong thing to use here. It doesn’t let you define classes with Python’s normal class syntax, instead making you set up every class attribute manually. It’s used to create classes by hand, e.g. if you have an array of base classes and you want to create a class using it (which you can’t do with Python’s class syntax). Don’t use it here.