We theoretically analyze pulse propagation in a medium of inhomogeneously broadened two-level quantum systems, which have a vibrational degree of freedom with respect to the center-of-mass coordinate. This system mimics local mode oscillations of rare-earth-metal-ion dopants in dielectric crystals that are coupled to electronic transitions. We show the emergence of various nonlinear optical phenomena, such as self-induced transparency or the nonlinear interaction between two pulses coupling to different electrovibrational transitions. Interaction between the pulses makes it possible to generate various Raman sidebands of the incident fields and to tune the location where they are generated. We also demonstrate controlled population transfer between electrovibrational states of the ions at specific points along the propagation axis. Similarities and differences between our results and other pulse propagation phenomena of few-level quantum systems are discussed.