I have done some searching but cannot find any asset or reference to this, is it possible to make a soft / pneumatic wheel / tire in Unity? Something where the tire will deform if a solid object is hit?
Any advice on how to approach this would be appreciated.
Nope, that’s a complex subject, not built in. You’ll need to create your own collider that can deform along with the mesh based on impacts from the physics engine. If I were you, I’d research custom colliders for Unity and procedural mesh deformation. That should get you going in the right direction.