A non-yellowing coating composition particularly useful as primer that has a low VOC and excellent adhesion and chip resistance and comprises an aqueous coating composition having a VOC of less than 0.12 kg/L (1.0 pounds/gallon) comprising 25-70% by weight of a film forming binder and correspondingly, 75-30% by weight of an aqueous carrier for the binder and the composition contains pigment in a pigment to binder weight ratio of 5/100 to 150/100 and has a pH of 7-10; wherein the binder comprises a. 50-90% by weight, based on the weight of the binder, of a blend of the following constituents: a dispersed acrylic polymer, a dispersed polyester having an acid value of 15-60, a number average molecular weight from 1500-7000 and a hydroxyl value of not more than 95 and a hydroxy terminated component that is either a polyalkylene ether polyol or a urethane diol or a mixture of the above hydroxy terminated components, and b. 10-50% by weight, based on the weight of the binder, of a water-compatible alkylated melamine formaldehyde crosslinking agent; and wherein a hydroxy functional alkyl amine is used to neutralize the binder and adjust the pH of the composition.