I'm new to fenics, though used commercial fem softwares. I wanted to know if fenics provides capability to simulate events like car crash where we have dynamic forces acting on a moving structure resulting in extreme material deformation.
If you can write down a corresponding weak form, then you can. Be aware though, that it is everything but straightforward to implement an implicit solid mechanics routine as known from commercial codes. But since dynamic simulations are mostly done in an explicit fashion, you should be able to come up with a solution in FEniCS.
There is no notion of forces, structures, stresses and other solid mechanics terms in FEniCS. You have to derive your weak form and care about time integration yourself.