This thesis addresses the intersection of terrain modelling and vehicle simulation in off-road environments, aiming to enhance the accuracy of vehicle performance predictions across diverse terrains. The research begins with a rigorous validation of the solver employed in Finite Element Method (FEM) analyses, utilizing established tests from terramechanics to ensure precise soil behaviour modelling. This initial stage focuses on accurately capturing soil deformation and stress responses, which are critical for realistic terrain interaction. Building upon these validated soil models, the study then explores their application within the automotive sector by conducting pressure-sinkage tests, a cornerstone in understanding tire-soil interactions. The extracted pressure-sinkage characteristics serve as foundational parameters that can be integrated into vehicle simulation models, facilitating improved predictions of tire performance and mobility on varied soil types.